A publicly traded Bitcoin fund, better known as the Bitcoin ETF (Exchange Traded Fund), continues to be considered by the cryptocurrency community as a “holy grail” for reversing the trend and returning a bull market. With Canaccord, the largest investment firm in Canada, another major investment firm on similar lines said that it is highly unlikely to admit a Bitcoin ETF in 2018.
In an official report entitled ” Blockchain and Digital Assets: US Equity Research, ” Canaccord researchers Michael Graham and Scott Suh have now written that a Bitcoin ETF in the US is expected to arrive in 2019.
The Canadian investment firm publishes a quarterly update on the status of cryptocurrencies. The release has recently gained attraction in North America after making some important predictions. The latest release featured a long article on Bitcoin ETFs. Canaccord predicts that the SEC will not decide on current ETF applications this year, and will exercise its right to postpone the decision to 2019 next year.
“Although the VanEck SolidX Bitcoin Trust, considered by many to be the best candidate for possible approval, will make a possible decision this month, it is widely believed that the SEC will extend its deadline. A decision can only be made in March 2019.”
Why a Bitcoin ETF is Unlikely in 2018?
Theoretically, the US Securities and Exchange Commission (SEC) must make its decision on the VanEck SolidX Bitcoin ETF by August 10, this Friday. Instead, Canaccord argues that the Bitcoin ETF decision is being postponed because the SEC still wants to clarify a number of regulatory issues.
The SEC rejected several applications for a Bitcoin ETF this year, although the number of applications for its own exchange-traded fund has increased dramatically for BTC.
Although the VanEck-SolidX Bitcoin ETF and the Chicago Board Options Exchange (CBOE) Bitcoin ETF, according to many experts, have the highest probability of being approved by the SEC, the majority of experts believe that the Commission will postpone its decision. The Canaccord researchers write that due to the history of VanEck and CBOE in dealing with regulated US markets and the US Securities and Exchange Commission SEC, their Bitcoin ETFs are likely to be approved by the SEC, just not immediately. The VanEck ETF is fully secured, takes over safe storage for investors and does not rely on just one crypto-exchange for valuation, which ultimately led to the rejection of the Winklevoss Bitcoin ETF, says Canaccord.
The SEC recently announced to postpone its decision on 5 Bitcoin ETFs from the New York Stock Exchange (NYSE) Arca to September. The reason for this was that the risks associated with high levels of volatility and cryptocurrency needed more time to assess the approval or rejection of the proposed rule change.
CNBC expert Bob Pisani said he spoke with both the Securities and Exchanges Commission Chairman Jay Clayton and the SEC’s Bitcoin Affairs Officer. Both stated that they are pursuing a “slow and cautious” approach to Bitcoin ETFs as they have to answer to the US Congress. The presumption of the CNBC expert is that the SEC extends the time frame for deciding on the Bitcoin ETF from VanEck.
The statement on the Bitcoin ETF of the New York Stock Exchange (NYSE) Arca could also be another indication that the decision on the VanEck Bitcoin ETF is also postponed.
However, SEC Commissioner Hester Peirce believes that the Commission should approve a Bitcoin ETF, but it is currently in the minority. It recently challenged the SEC’s rejection of the Winklevoss Bitcoin Trust (BZX). It considers that the proposal itself complies with the law and the SEC failed to apply the law correctly. The refusal decision focused on the characteristics of the spot market for Bitcoin and not on the ability of the BZX, to monitor the trading of ETZ shares listed and traded on the BZX and to prevent manipulation.